Investors who placed their bets on Donald Trump’s publicly traded media and technology company have emerged as some of the biggest losers in a stock market that has seen rallies from Amsterdam to Sydney this year. This situation underscores the risks associated with following a figure known for businesses that have historically gone bust.
Thirty-five years after Trump’s debt-laden Taj Mahal casino faced bankruptcy—the first of six such failures including other Atlantic City properties, New York’s Plaza Hotel, and Trump Entertainment Resorts—his latest venture, Trump Media & Technology Group Corp., is facing similar challenges. The company, primarily known for its Truth Social platform and trading under the ticker “DJT,” reported a mere $3.7 million in revenue over the 12 months ending September 30, while posting an operating loss of $186.1 million.
Stock Market Performance and Company Challenges
Trump Media has experienced a significant decline in the share market, with shares plummeting 69 percent in 2025 through Wednesday. Among the 20 internet media services companies in the Russell 1000 Index, it was the worst performer over several time frames, according to Bloomberg data. Furthermore, it ranks lowest among the 97 public internet media services companies worldwide with a market value of at least $1 billion.
In a recent strategic move, Trump Media announced a merger with TAE Technologies, a closely held fusion developer. This merger will result in each company holding approximately a 50 percent stake in the combined entity. Despite a 33 percent surge in Trump Media’s shares following the announcement, they remain down about 66 percent for the year. The gains likely reflect the diminished role of current Trump Media management in the new structure, with Devin Nunes, former Republican congressman, becoming co-CEO alongside TAE’s Michl Binderbauer.
Alternative Ventures and Financial Struggles
For Trump supporters, the stock market is not the only avenue to invest in Trump-related ventures. However, these alternatives have also proven to be financial pitfalls. In January, Trump launched a memecoin to commemorate his return to the White House. Initially, the coins soared, with the Trump family and partners holding at least $50 billion worth. Yet, the value quickly plummeted, resulting in near-total losses for those who bought at the peak.
Simultaneously, Trump’s family businesses are embroiled in litigation and regulatory investigations. A merger plan between World Liberty Financial, a crypto start-up run by Trump’s sons, and Canada’s Alt5 Sigma Corporation has encountered difficulties. The tokens issued by World Liberty have lost about half their value, and Alt5 Sigma’s shares have dropped 86 percent since the merger was announced. An investor expressed feeling “betrayed” by the developments.
Market Context and Historical Parallels
These financial setbacks are particularly notable in a year when all 84 equity indexes tracked by Bloomberg have shown gains for the first time since 2019. Trump Media’s shares reached a peak of $42.91 on January 13, just days before the inauguration, but have since fallen to as low as $10.29 in November, closing at $14.86 on Thursday. Early investors who bought in during the company’s public debut in March 2024, through a merger with Digital World Acquisition Corp., have faced significant losses, with shares once reaching $66.22.
The discrepancy between Trump Media’s performance and its optimistic projections is stark. In a February 2024 filing, the company claimed a “broad potential user base” and “established brand loyalty.” However, professional stock analysts have not provided any 12-month target share prices or revenue estimates for Trump Media, leaving investors without typical market guidance.
Implications and Future Prospects
Trump’s political success has often been attributed to his outsider status and business acumen, appealing to those frustrated with government inefficiencies. However, the financial outcomes of his ventures raise questions about the choice of a businessman with a track record of self-enrichment over stakeholder success. Despite the financial losses incurred by investors, Trump’s personal net worth has reportedly doubled to around $6 billion over the past 24 months.
The unfolding situation with Trump Media and related ventures serves as a cautionary tale for investors and highlights the complexities of navigating investments tied to high-profile figures with controversial business histories. As the market continues to evolve, stakeholders will be closely watching for any signs of recovery or further decline.
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